435- We Don't Pick Stocks
For people outside the world of finance, the difference between value investing and trading stocks can be difficult to break down. This is further complicated by many of our financial institutions relying on outdated theories and principles to prepare new investors as they begin their investing practice.\n\nThe Rule #1 method puts a focus on buying into a company at a discount based on fundamental analysis and holding it until the market reflects its true value, while simply picking stocks relies heavily on taking advantage of short-term fluctuations to capitalize on market movements.\xa0The risks of day trading are far greater than that of responsible value investing.\n\nJoin Phil and Danielle as they break down the disparities between these approaches, explain the philosophy behind Rule #1, and struggle to remember names of what they\u2019re discussing.\n\nThe key to value investing is buying the right company at the right price\u2014for some sound guidance on finding the perfect investment, click here for your free copy of The Four Ms for Successful Investing:\xa0https://bit.ly/3LhVUAR\n\nTopics Discussed:\n\nStock investing vs. value investing\n\nModern portfolio theory\n\nPrice vs. value\n\nOverthinking in investing\n\nInstitutional imperative\n\nMultilevel Marketing\n\nResponsibilities of corporate governance\n\nThe importance of due diligence\n\n\nLearn more about your ad choices. Visit megaphone.fm/adchoices